Semtech Corp (SMTC) 2026 Q1 法說會逐字稿

Good day, and thank you for standing by. Welcome to Semtech Corporation's First Quarter Fiscal Year 2025 Earnings Conference Call. (Operator Instructions) Please be advised that today's conference call is being recorded.

您好，感謝您的支持。歡迎參加 Semtech Corporation 2025 財政年度第一季財報電話會議。（操作員指示）請注意，今天的電話會議正在錄音。

I would now like to hand the conference over to Mark Lin, Executive Vice President and Chief Financial Officer. Please go ahead.

現在，我想將會議交給執行副總裁兼財務長馬克林 (Mark Lin)。請繼續。

Thank you, operator. Good day, everyone, and welcome. In addition to Hong Hou, President and Chief Executive Officer. I'm thrilled to be joined by Mitch Haws, Senior Vice President of Investor Relations. Many of you know Mitch given his breadth of semiconductor experience at AMD, Skyworks, and Freescale, and now Semtech.

謝謝您，接線生。大家好，歡迎光臨。此外還有總裁兼執行長洪侯。我很高興能與投資者關係高級副總裁 Mitch Haws 一起參加此次會議。你們中的許多人都知道 Mitch，因為他在 AMD、Skyworks、Freescale 以及現在的 Semtech 擁有豐富的半導體經驗。

With that, I'll turn the call over to Mitch.

說完這些，我會把電話轉給米奇。

Thanks, Mark. I'm very happy to join the Semtech team and look forward to engaging with all of you in the months and quarters ahead. Today, after market close, we released our unaudited results for the first quarter of fiscal year 2026 and which are posted along with an earnings call presentation to our investor website at investors.semptech.com. Today's call will include various remarks about future expectations, plans, and prospects, which comprise forward-looking statements. Please refer to today's press release and see slide 2 of the earnings presentation as well as the Risk Factors section of our most recent annual report on Form 10-K for a number of risk factors that could cause our actual results and events to differ materially from those anticipated or projected on this call.

謝謝，馬克。我很高興加入 Semtech 團隊，並期待在未來幾個月和幾季與大家合作。今天收盤後，我們發布了2026財年第一季的未經審計業績，並將與收益電話會議簡報一起發佈在我們的投資者網站investors.semptech.com上。今天的電話會議將包含關於未來預期、計劃和前景的各項評論，這些評論構成前瞻性陳述。請參閱今天的新聞稿、收益報告的第 2 張投影片以及我們最新的 10-K 表年度報告的風險因素部分，以了解可能導致我們的實際結果和事件與本次電話會議預期或預測的結果和事件存在重大差異的多種風險因素。

You should consider these risk factors in conjunction with our forward-looking statements. Unless otherwise noted, all income statement-related financial measures will be non-GAAP other than net sales. Please refer to today's press release and see slide 3 of the earnings presentation for important information regarding notes on our non-GAAP financial presentation. The press release and earnings presentation also include reconciliations of our GAAP and non-GAAP financial measures.

您應該結合我們的前瞻性陳述來考慮這些風險因素。除非另有說明，除淨銷售額外，所有與損益表相關的財務指標均採用非 GAAP 準則。請參閱今天的新聞稿，並參閱收益報告的第 3 張投影片，以了解有關我們的非 GAAP 財務報告註釋的重要資訊。新聞稿和收益報告還包括我們的 GAAP 和非 GAAP 財務指標的對帳。

With that, I will turn the call over to Hong.

說完這些，我將把電話轉給洪。

Thank you, Mitch. Welcome aboard. Good afternoon, everyone. We reported Q1 results with net sales, adjusted gross margin, adjusted operating margin, and adjusted diluted earnings per share each above the midpoint of our guidance. These results illustrate the resiliency of our business and offer another proof point of our operational excellence.

謝謝你，米奇。歡迎登機。大家下午好。我們報告的第一季業績顯示，淨銷售額、調整後毛利率、調整後營業利潤率和調整後稀釋每股收益均高於我們預期的中位數。這些結果證明了我們業務的彈性，並為我們的卓越營運提供了另一個證明。

Semtech's Q1 ended on April 27, so we closed the last month of the quarter during an extremely turbulent period, but we successfully navigated through dynamic tariff policies. Super coordination among our operations, sales, compliance teams was instrumental in mitigating the tariff situation for Semtech and our customers facilitating a stable flow of product across the global semiconductor supply chain. I extend my heart field thanks to these teams and recognize their efforts in helping us achieve our Q1 results and supports our conviction for the quarters ahead.

Semtech 的第一季於 4 月 27 日結束，因此我們在一個極其動蕩的時期結束了本季度的最後一個月，但我們成功地應對了動態關稅政策。我們的營運、銷售和合規團隊之間的高度協調對於緩解 Semtech 和我們客戶的關稅狀況​​起到了重要作用，促進了全球半導體供應鏈中產品的穩定流動。我衷心感謝這些團隊，並感謝他們為幫助我們實現第一季業績所做的努力，並支持我們對未來幾季的信心。

Semtech's Q1 results also reflect our focus on core priorities, including portfolio optimization, strategic investment in R&D, and driving margin expansion. While uncertainty in the market may impact the timing of some of our portfolio optimization initiatives, we have strong conviction that we can operate these businesses to grow the top line, expand profit margins, and improve overall financial metrics. We believe this will create more value for our shareholders.

Semtech 第一季的業績也反映了我們對核心優先事項的關注，包括投資組合優化、研發策略投資和推動利潤率擴大。雖然市場的不確定性可能會影響我們一些投資組合優化舉措的時機，但我們堅信，我們可以透過經營這些業務來增加營業收入、擴大利潤率並改善整體財務指標。我們相信這將為我們的股東創造更多價值。

Moving to our end markets. For Q1, Infrastructure net sales were $72.8 million, up 5% sequentially and up 30% year over year. Net sales for data center were a record $51.6 million up 3% sequentially and up 143% year over year. Our expectations for short-term demand gap in coverage remain consistent. That said, we expect our data center business to be a sustainable growth driver, especially given recent indications of capital expenditure growth by hyperscalers as well as from innovations in our copper and optical portfolios. AI data centers face critical power and thermal challenges which will grow exponentially as compute workloads increase. Our analog solutions are well suited to address these challenges.

轉向我們的終端市場。第一季度，基礎設施淨銷售額為 7,280 萬美元，季增 5%，年增 30%。資料中心淨銷售額達到創紀錄的 5,160 萬美元，季增 3%，年增 143%。我們對短期覆蓋需求缺口的預期保持不變。也就是說，我們預計我們的資料中心業務將成為可持續的成長動力，特別是考慮到最近超大規模企業的資本支出成長跡像以及我們的銅和光纖產品組合的創新。人工智慧資料中心面臨關鍵的電力和散熱挑戰，隨著運算工作負載的增加，這些挑戰將呈指數級增長。我們的模擬解決方案非常適合應對這些挑戰。

CopperEdge enables a significant paradigm shift in connectivity, delivering the signal integrity and rich extension needed for next-generation AI clusters. Compared to DSP-based options, CopperEdge reduced power consumption by over 90% and also enables a significantly longer reach than the direct touch copper or DAC cables.

CopperEdge 實現了連接領域的重大範式轉變，提供了下一代 AI 集群所需的訊號完整性和豐富的擴展。與基於 DSP 的選項相比，CopperEdge 將功耗降低了 90% 以上，並且比直接接觸銅或 DAC 電纜的覆蓋範圍更長。

At OFC, we demonstrated a number of CopperEdge-driven ACC applications, all with the bit error rate well below acceptable ranges. At 1.60, we successfully run traffic across a 3-meter 27-gauge cable using two 24 gig (inaudible) ports. Our launch application at our once customer last year was a 1.1-meter table. So this demonstration highlighted the high-performance capabilities and the reach of our CopperEdge ICs.

在 OFC 上，我們示範了許多 CopperEdge 驅動的 ACC 應用，所有應用的誤碼率都遠低於可接受範圍。在 1.60 時，我們成功地使用兩個 24 千兆（聽不清楚）連接埠在 3 公尺 27 號電纜上傳輸流量。我們去年在曾經的客戶那裡推出的應用程式是一張1.1公尺的桌子。因此，這次演示突出了我們的 CopperEdge IC 的高性能能力和覆蓋範圍。

At 800 gig, the dominate read of data center traffic, we demonstrated an extended reach 5-meter ACC connected to Broadcom Tomahawk 5 switch. A prospective customer requested this configuration for use at the replacement to DAC cables.

在 800 gig（資料中心流量的主要讀取量）下，我們示範了連接到 Broadcom Tomahawk 5 交換器的擴展範圍 5 公尺 ACC。一位潛在客戶要求使用此配置來替換 DAC 電纜。

Also connected to the TomaHub5 switch with ultrathin 3-meter 30 gig cable that has significant benefits in airflow and bending radius both characteristics valued by reg architects. We remain closely engaged with our CopperEdge [and their] customer for applications in their future general recent RECs. In addition, hyperscalers, switch vendors and cable manufacturers continue to show interest in CopperEdge ACCs.

也透過超薄 3 公尺 30 千兆電纜連接到 TomaHub5 交換機，這在氣流和彎曲半徑方面具有顯著優勢，這兩個特性都受到註冊建築師的重視。我們仍與 CopperEdge 及其客戶保持密切合作，以在他們未來的一般近期 REC 中提出申請。此外，超大規模企業、交換器供應商和電纜製造商繼續對 CopperEdge ACC 表現出興趣。

We have delivered ACC cables for testing and qualification to multiple customers and expect the meaningful design wins at hyperscalers and enterprise customers leading to volume ramps before the end of this fiscal year.

我們已經向多個客戶交付了 ACC 電纜以供測試和鑑定，並期望在超大規模用戶和企業客戶中獲得有意義的設計勝利，從而在本財年結束前實現產量成長。

On the optical side, our LPO demonstration at OFC generated significant interest and our expectation of deployments in the second half of this fiscal year remains unchanged. We are pleased that the feedback from our customers indicate Semtech TIA for LPO offers superior performance and we believe we are winning the lion's share in TIAs, and we also released our LPO laser drivers last quarter and are generating design in traction and multiplemodule suppliers. Moving to our high-end consumer end market. Net sales for Q1 were $35.4 million, flat sequentially and up 3% year over year.

在光學方面，我們在 OFC 的 LPO 演示引起了極大的興趣，我們對本財年下半年部署的預期保持不變。我們很高興看到客戶的反饋表明，Semtech 的 LPO TIA 提供了卓越的性能，我們相信我們在 TIA 領域贏得了最大份額，而且我們還在上個季度發布了 LPO 雷射驅動器，並且正在吸引設計人員和多模組供應商的注意。轉向我們的高階消費終端市場。第一季淨銷售額為 3,540 萬美元，與上季持平，年增 3%。

Net sales in Consumer TVS were $24.5 million, in line with our outlook for Q1 and up 2% sequentially. We expect a pattern of smartphone unit ramps fairly consistent with the past years, with the increase in the second quarter and the successive increase in the third quarter. Within Consumer TVS, we believe our innovation continues to result in increased content. I'm pleased to highlight expanded design activity of search switch a system-level protection device across a number of manufacturers and platforms. Search Switch has the capability to simultaneously address expanded dimension of threat from ESD, our electrostatic discharge, our EOS or electrical overstress across a wide operating temperature range.

消費電視淨銷售額為 2,450 萬美元，與我們對第一季的預期一致，季增 2%。我們預期智慧型手機銷售的成長模式與過去幾年基本一致，第二季將出現成長，第三季也將持續成長。在消費電視領域，我們相信我們的創新將繼續帶來內容的增加。我很高興地強調，搜尋切換系統級保護設備的設計活動已擴展到多個製造商和平台。Search Switch 能夠同時解決廣泛工作溫度範圍內的 ESD、靜電放電、EOS 或電氣過應力等擴大威脅維度。

Final process geometry in advanced nodes for IC Fabric casing have increased the demand for the type of rigorous off-chip system-level protection offered by search switch. For our per person sensing products, we have discussed use in smart glasses and application, we believe, has a strong potential to be next-generation AI interface platform. We have a growing field of opportunity and are actively engaged with a broad range of customers on both existing designs and on new launches. In smartphones, per se addresses increasingly stringent specific absorption rate or SAAR standards and is currently deployed on devices at most leading manufacturers. PerSe offers meaningfully lower power, improved sensitivity and best-in-class noise rejection.

IC Fabric 外殼先進節點的最終製程幾何形狀增加了對搜尋開關提供的嚴格片外系統級保護的需求。對於我們的人均感測產品，我們已經討論了在智慧眼鏡和應用中的使用，我們相信，它很有可能成為下一代人工智慧介面平台。我們擁有不斷成長的機會領域，並積極與廣大客戶就現有設計和新產品發布進行合作。在智慧型手機中，本身就解決了日益嚴格的特定吸收率或 SAAR 標準，並且目前已在大多數領先製造商的設備上部署。PerSe 具有顯著更低的功耗、更高的靈敏度和一流的噪音抑制性能。

PerSe use of Semtech's novel packaging expertise also it results in a smaller footprint that allows us and our customers to develop like form factors. Moving to our industrial end market. For Q1, Industrial net sales were $142.8 million, down 3% sequentially in line with our outlook and up 24% year over year. Within the industrial end market, net sales of lower enabled solutions remained strong at $38.9 million, up 5% sequentially and up 81% year over year. Demand supporting new product launches and deployments remained robust.

PerSe 利用 Semtech 的新型封裝專業知識，還可以縮小佔用空間，使我們和我們的客戶能夠開發類似的外形尺寸。轉向我們的工業終端市場。第一季度，工業淨銷售額為 1.428 億美元，季減 3%，符合我們的預期，年增 24%。在工業終端市場，較低啟用解決方案的淨銷售額保持強勁，達到 3,890 萬美元，季增 5%，年增 81%。支援新產品發布和部署的需求依然強勁。

We recently announced that Sonova, a world leader in innovative health care solutions, chose Semtech as a technology partner to create an ultra-small ultra-low-power wireless radio and power management IC. LoRa technology highlights Semtech's deep expertise in ultra-low power RF with the clear match for battery-operated devices, including hearing aids. Robotics and unmanned aerial vehicles are also an emerging market for LoRa, lower ability to operate in due bands 2.4 gigahertz and ISM frequencies offered enhanced bandwidth which is well suited for these applications. In addition, LoRa module license scheme now paired with multiple protocols provided the capability of LoRa Plus allows manufacturers to extend the end applications, including safety, security as well as smart building. Our IoT systems hardware business recorded Q1 net sales of $63.5 million, down 8% sequentially and but within expectation of our outlook and up 31% year over year.

我們最近宣布，創新醫療解決方案領域的全球領導者 Sonova 選擇 Semtech 作為技術合作夥伴，共同打造超小型超低功耗無線電和電源管理 IC。LoRa 技術凸顯了 Semtech 在超低功耗射頻領域的深厚專業知識，並與助聽器等電池供電設備完美搭配。機器人和無人機也是 LoRa 的新興市場，在 2.4 千兆赫和 ISM 頻率下的運作能力較低，因此提供了增強的頻寬，非常適合這些應用。此外，LoRa模組授權方案現已與多種協議配對，提供的LoRa Plus功能可讓製造商擴展終端應用，包括安全、保全以及智慧建築。我們的物聯網系統硬體業務第一季淨銷售額為 6,350 萬美元，季減 8%，但在我們預期的範圍內，年增 31%。

Bookings in the first quarter for this business increased for the seventh consecutive quarter. Pipeline also increased substantially in Q1, attributable to both the inclusion of a significant China-based competitor on a sanctioned list and the strong indications of a broader market recovery. We expect a continued growth and improved profitability in our IoT cellular portfolio based on stronger pipeline and bookings. Growing 5G adoption REITs, particularly in North America, is benefiting our hardware business. with the current deployments utilizing the first and second gen modules.

該業務第一季的預訂量連續第七個季度增長。第一季度，管道數量也大幅增加，這既歸因於一家重要的中國競爭對手被列入製裁名單，也歸因於更廣泛的市場復甦的強勁跡象。我們預計，基於更強勁的通路和預訂量，我們的物聯網蜂窩產品組合將持續成長並提高獲利能力。5G 採用房地產投資信託基金 (REIT) 的不斷增長，尤其是在北美，正在使我們的硬體業務受益。目前的部署利用第一代和第二代模組。

In Q1, we launched the 23rd gen 5G modules, a cost-optimized solution supporting broader 5G adoption for value-focused applications and the performance optimized solutions supporting 5G advanced to enable next-generation edge-based AI applications. IoT connected services net sales were overall stable for this largely recurring revenue business. Our connected services business is a great example of Semtech's deployment of AI tools. As an example, anomaly detection highlights abnormal network activities and notifies our operating center, and we believe this improved detection capabilities have prevented a security incidents for our customers. In summary, we have made significant strides in strengthening Semtech's financial foundation over the past year.

在第一季度，我們推出了第 23 代 5G 模組，這是一種成本優化的解決方案，支援更廣泛地採用 5G 來實現以價值為中心的應用，以及效能優化的解決方案，支援 5G 先進技術以實現下一代基於邊緣的 AI 應用。對於這個主要為經常性收入的業務而言，物聯網連接服務淨銷售額總體保持穩定。我們的互聯服務業務是 Semtech 部署 AI 工具的一個很好的例子。例如，異常檢測突出顯示異常的網路活動並通知我們的營運中心，我們相信這種改進的檢測能力已經為我們的客戶防止了安全事件的發生。總而言之，過去一年我們在加強 Semtech 的財務基礎方面取得了重大進展。

which allows us to sharpen our focus on improving profitability and investing in innovation and capabilities that position us for long-term business growth. Our Q1 results reflect disciplined execution. At the same time, we recognize that there is still much work ahead of us to fully unlock the value of our unique technologies and to deliver sustainable long-term returns for our shareholders. We must continue to solidify a winning culture accelerate innovation and leverage our technology leadership and execution, all of which position us to deliver enhanced value to our shareholders with increased revenue and expanded margins. I now turn the call to Mark for additional details on our financial results and our outlook for the second quarter of fiscal '26.

這使我們能夠更加專注於提高盈利能力並投資於創新和能力，從而實現長期業務成長。我們第一季的業績反映了嚴格的執行。同時，我們認識到，要充分釋放我們獨特技術的價值並為我們的股東帶來可持續的長期回報，我們還有許多工作要做。我們必須繼續鞏固成功的文化，加速創新，並利用我們的技術領導力和執行力，所有這些都使我們能夠透過增加收入和擴大利潤為股東提供更高的價值。現在我把電話轉給馬克，以了解有關我們的財務業績和 26 財年第二季展望的更多詳細資訊。

Mark?

標記？

Thank you, Hong. For Q1, net sales were a record $251.1 million, above the midpoint of our outlook and up 22% year over year. We do not believe our Q1 net sales reflect material pull-ins due to tariffs. Net sales trends by end market, reportable segment and geographic region is included on slide 16 of the earnings presentation. Adjusted gross margin was 53.5%, up 30 basis points sequentially and up 370 basis points year over year.

謝謝你，洪。第一季度，淨銷售額達到創紀錄的 2.511 億美元，高於我們預期的中位數，年增 22%。我們認為，第一季的淨銷售額並未反映關稅帶來的材料拉力。收益報告的第 16 張投影片列出了按終端市場、報告分部和地理區域劃分的淨銷售額趨勢。調整後毛利率為53.5%，較上一季成長30個基點，較去年同期成長370個基點。

Adjusted net operating expenses were $86.6 million, below the midpoint of our outlook. Adjusted operating income was $47.6 million, resulting in an adjusted operating margin of 19% and up 680 basis points year over year. Adjusted EBITDA was $55.4 million, up 68% year over year, and adjusted EBITDA margin was 22.1%, up 600 basis points year over year. Adjusted net interest expense was $5 million, down sequentially from $11.2 million. The decrease was primarily reflective of a full quarter of savings from our Q4 debt paydown.

調整後的淨營運費用為 8,660 萬美元，低於我們預期的中位數。調整後的營業收入為 4,760 萬美元，調整後的營業利潤率為 19%，較去年同期成長 680 個基點。調整後 EBITDA 為 5,540 萬美元，較去年同期成長 68%，調整後 EBITDA 利潤率為 22.1%，較去年同期成長 600 個基點。調整後的淨利息支出為 500 萬美元，較上一季的 1,120 萬美元有所下降。這一下降主要反映了我們第四季債務償還帶來的整整一個季​​度的節省。

We recorded other net nonoperating expenses of $2.8 million, substantially reflective of foreign exchange revaluation losses. This amount stemmed from a weaker U.S. dollar, most notably in the month of April. We recorded adjusted diluted earnings per share of $0.38, up from $0.06 a year ago. Operating and free cash flow for Q1 were $27.8 million and $26.2 million, respectively, and these amounts reflect variable compensation payments in Q1.

我們記錄了 280 萬美元的其他淨非營業費用，主要反映了外匯重估損失。這一數字源自於美元走弱，尤其是在四月。我們記錄的調整後每股攤薄收益為 0.38 美元，高於一年前的 0.06 美元。第一季的營業現金流和自由現金流分別為 2,780 萬美元和 2,620 萬美元，這些金額反映了第一季的可變薪酬支付。

At the end of Q1, net debt sequentially decreased $14.8 million to $396.2 million. and comprised of approximately $171 million in term loan and $382 million in convertible notes, offset by $156 million in cash and cash equivalents. Along with debt reduction, strong business performance contributed to an adjusted net leverage ratio below 2 as of the close of Q1. We continue to prioritize debt reduction with a $10 million term loan prepayment in the first quarter and an additional $15 million to date in the second quarter. On our revolving credit facility, I am pleased we successfully amended the facility to increase our total borrowing capacity by $117.5 million for a total revolving credit facility size of $455 million.

截至第一季末，淨債務環比減少 1,480 萬美元至 3.962 億美元，其中包括約 1.71 億美元的定期貸款和 3.82 億美元的可轉換票據，抵消了 1.56 億美元的現金和現金等價物。除了債務減少之外，強勁的業務表現也使得截至第一季末的調整後淨槓桿率低於 2。我們繼續優先考慮減少債務，第一季提前償還了 1000 萬美元的定期貸款，第二季迄今還額外償還了 1500 萬美元。關於我們的循環信貸額度，我很高興我們成功修改了該額度，將我們的總借貸能力提高了 1.175 億美元，總循環信貸額度達到 4.55 億美元。

No financial covenants or material terms were modified as part of this amendment. As of today, the revolving credit facility remains undrawn, except for previously outstanding letters of credit totaling about $3 million. Now turning to our second quarter outlook. We currently expect net sales of $256 million, plus or minus $5 million, up 19% year over year at the midpoint. We expect net sales from our infrastructure end market to increase sequentially, including growth in data center.

本次修訂並未修改任何財務契約或重要條款。截至今天，除了先前未償還的信用證總額約 300 萬美元外，循環信貸額度仍未提取。現在談談我們的第二季展望。我們目前預計淨銷售額為 2.56 億美元，上下浮動 500 萬美元，中間值年增 19%。我們預計基礎設施終端市場的淨銷售額將持續成長，包括資料中心的成長。

We expect net sales from our high-end consumer end market to be up slightly, reflective of typical seasonality. We expect net sales from industrial end market to be flat to slightly down, with moderation in LoRa offsetting growth in our IoT cellular business. Based on expected product mix and net sales level, we expect adjusted gross margin to be 53.0%, plus or minus 50 basis points, a 260-basis-point improvement year over year at the midpoint.

我們預計高端消費終端市場的淨銷售額將略有上升，這反映了典型的季節性。我們預計工業終端市場的淨銷售額將持平或略有下降，LoRa 的放緩將抵消我們物聯網蜂窩業務的成長。根據預期的產品組合和淨銷售水平，我們預期調整後的毛利率為 53.0%，上下浮動 50 個基點，中間值較去年同期提高 260 個基點。

Adjusted net operating expenses are expected to be $87.5 million, plus or minus $1 million, resulting in an adjusted operating margin at the midpoint of 18.8% and a 460-basis-point improvement year over year. Adjusted EBITDA is expected to be $56 million, plus or minus $3 million, resulting in an adjusted EBITDA margin at the midpoint of 21.9%, a 310-basis-point improvement year over year.

調整後的淨營運費用預計為 8,750 萬美元，上下浮動 100 萬美元，導致調整後的營運利潤率達到中間值 18.8%，年增 460 個基點。調整後的 EBITDA 預計為 5,600 萬美元，上下浮動 300 萬美元，調整後的 EBITDA 利潤率中位數為 21.9%，較去年同期提高 310 個基點。

We expect adjusted interest and other expenses net to be $5.5 million, reflective of leverage-based pricing on our term loan that reduced our interest rate. another benefit of our lower leverage ratio. We expect an adjusted normalized income tax rate of 15%. These amounts are expected to result in adjusted diluted earnings per share of $0.40, plus or minus $0.03, based on a weighted average share count of 90 million shares.

我們預計調整後的利息和其他費用淨額為 550 萬美元，這反映了我們定期貸款的基於槓桿的定價降低了我們的利率。這是我們較低槓桿率的另一個好處。我們預計調整後的標準化所得稅率為 15%。根據 9,000 萬股的加權平均股數，這些金額預計將導致調整後每股稀釋收益為 0.40 美元，上下浮動 0.03 美元。

Thank you, Mark. We can now turn the call back over to the operator for the question-and-answer session.

謝謝你，馬克。現在我們可以將電話轉回給接線生進行問答環節。

(Operator Instructions) Quinn Bolton, Needham & Company.

（操作員指示）Quinn Bolton，Needham & Company。

To start off with a question on the cellular module business. I was, I guess, a little surprised to see that down I think after quarters of increased bookings and Q1 being the seventh quarter. So wondering if there was anything specific to call out in the cellular module business in April. And thank you for the additional gross margin disclosure in today's press release. But it does look like the gross margin on the cellular modules also came in down meaningfully both quarter-on-quarter and year-on-year.

首先問一個關於蜂窩模組業務的問題。我想，在經歷了幾個季度的預訂量增長之後，看到這一數字下降，我感到有點驚訝，而第一季是第七季度。所以想知道四月份蜂窩模組業務是否有任何特別值得關注的事情。感謝您在今天的新聞稿中披露額外的毛利率。但看起來蜂窩模組的毛利率也比上一季和去年同期大幅下降。

I just wondered if you could explain what happened on the margin side of the cellular module business in the first quarter?

我只是想知道您是否可以解釋一下第一季蜂窩模組業務的利潤方面發生了什麼？

Quinn, thank you for your question. Yes. So from our Q4 guidance, we expected some level of seasonality on our IoT system product. And -- but you are right, this business is experiencing pretty significant tailwind as I provided during the prepared remarks, because of the sanctioned list for our competitor base in China and also the exit of blocks into the IoT cellular business. This tailwind is very evident from our booking activities.

奎因，謝謝你的提問。是的。因此，根據我們第四季的指導，我們預計我們的物聯網系統產品會出現一定程度的季節性。而且——但是您說得對，正如我在準備好的發言中提到的那樣，這項業務正在經歷相當大的順風，因為我們在中國的競爭對手名單被批准，而且物聯網蜂窩業務的區塊也被退出。從我們的預訂活動中可以明顯看出這種順風。

And so we do expect -- this business is going to be revenue, is going to be accelerating in the quarters forward. But Q1 was a little low, and we expected that from the guidance of the Q4.

因此，我們確實預計，這項業務的收入將在未來幾季加速成長。但第一季的業績有點低，這是我們根據第四季的預測所預料到的。

And Quinn, just to address gross margins. This also came in within expectations. We had guided a little bit lower gross margin or we expect a little bit lower gross margin from the ISC business. But within this business, you also have a little bit of mix between modules and routers affecting the gross margin that we reported. So you saw a mix shift more to modules away from routers and that's why I came in lower than, say, the prior quarter or prior year.

奎因，只是想談談毛利率。這也也在預料之中。我們指導的毛利率會略低一些，或者我們預計 ISC 業務的毛利率會略低一些。但在這個業務中，模組和路由器之間的混合也會影響我們報告的毛利率。因此，您會看到混合轉向從路由器到模組的轉變，這就是為什麼我的收入低於上一季或去年同期的原因。

And there is also a onetime event on the inventory on the module side. So that is a kind of like impacting the overall IoT system margin adversely. That is a onetime event.

且模組端的庫存也有一個一次性事件。這會對整個物聯網系統的利潤產生不利影響。那是一次性事件。

Got it. So there was a write-off of obsolete or excess inventory in that something like that, that was a further drag.

知道了。因此，過時或多餘的庫存被註銷了，這又是一個拖累。

(inaudible) when it was more -- in Q4, we had a little bit of a tailwind that we didn't recur in Q1.

（聽不清楚）當它更多時 - 在第四季度，我們遇到了一點順風，但在第一季度卻沒有再次出現。

Christopher Rolland, Susquehanna International Group.

薩斯奎漢納國際集團的克里斯多福羅蘭 (Christopher Rolland)。

So mine is just around AI connectivity. It sounded like there was some progress here. Maybe on the CopperEdge side with engagements and revenue by the end of the year. Perhaps you could expand on that and just more broadly talk about where we are in visibility around AI connectivity for you guys overall?

所以我的研究重點只是圍繞著人工智慧連結。聽起來這裡已經有了一些進展。也許到今年年底，CopperEdge 方面就能實現參與度和收入。也許您可以進一步闡述這一點，更廣泛地談談我們在 AI 連接方面的整體可見性方面處於什麼位置？

Yes. Chris, thank you for that question. Our CopperEdge product, we trail blaze that product into the market through the engagement with the anchor customer. Since then, we have reached out to more than 20 customers and having very close engagement with many of them. And it is really very encouraging to see that they finally recognize the unique advantage that ACC offers compared to AOC or AEC in terms of low power consumption, low latency and a number of them are taking our product prototype samples for qualification and testing.

是的。克里斯，謝謝你的提問。我們的 CopperEdge 產品，我們透過與主力客戶的互動將產品開拓到市場。自那時起，我們已聯繫了 20 多位客戶，並與其中許多客戶保持著非常密切的合作。看到他們最終認識到 ACC 在低功耗、低延遲方面相對於 AOC 或 AEC 的獨特優勢，並且他們中的許多人正在拿我們的產品原型樣品進行鑑定和測試，這確實非常令人鼓舞。

And so the use cases are going in for scale up of the ASIC interconnect and also for scale out, especially the first level of the switch fabric from NIC to top of the rack. And our demo at OFC, it's used by at SynNet, and really shows and give a lot of confidence for our customers. They come in, see and kick the tire we go the cables and see the bit error rate well below the acceptable limit. And so for, say, 200 gigabit, they could see our product can transmit over 3 meters with a 30-gauge cable. That is really very desirable.

因此，使用案例將用於擴大 ASIC 互連規模以及擴大其規模，特別是從 NIC 到機架頂部的交換結構的第一級。我們在 OFC 上的演示被 SynNet 使用，確實為我們的客戶帶來了極大的信心。他們進來，查看並檢查了電纜，發現誤碼率遠低於可接受的限度。因此，對於 200 千兆位，他們可以看到我們的產品可以使用 30 號電纜傳輸超過 3 公尺。這確實非常令人嚮往。

So as I said, we expect a number of the customers we're engaging is going to be finished to qualification and start ramping by Q4 this year.

正如我所說，我們預計我們正在合作的許多客戶將在今年第四季完成資格認證並開始量產。

Hong. My second question is around LPO and optical more generally for you guys. If you could describe what you're seeing there in terms of like TIAs, drivers for maybe regular optical and then for LPO and how that might ramp through the year? That would be great.

洪。我的第二個問題是關於 LPO 和光學方面的，請問您對此有何看法？您能否描述一下您在 TIA 方面看到的情況，以及常規光學和 LPO 的驅動因素，以及它們在全年將如何發展？那太好了。

So as you know, that the Semtech TIA is considered the gold standard for the industry. For traditional retimed our LPO, our TIA has been designed in almost in every module manufacturers. And the LPO coming out of the OFC you know that MSAs, they finalize the specification. So now the suppliers and the customers, the cloud service providers. They're all on the same sheet of music and having the same expectation on performance.

如大家所知，Semtech TIA 被認為是業界的黃金標準。對於傳統的重定時 LPO，我們的 TIA 幾乎被所有模組製造商採用。您知道，來自 OFC 的 LPO 和 MSA 會最終確定規範。現在供應商和客戶都是雲端服務提供者。他們都在同一樂譜上，對錶演抱有相同的期望。

And there's no longer any argument. Now it's really about the timing and what platform they start deployment. So this is a tremendous progress compared to a couple of years ago. As you know, this industry and tracking for a long time. We're seeing 800 gig links of 100 gigabit per second is going to be used first by multiple cloud service providers.

不再有任何爭論。現在真正重要的是時機和他們開始部署的平台。與幾年前相比，這是一個巨大的進步。正如你所知，這個行業已經被跟踪了很長時間。我們看到，每秒 100 千兆的 800 千兆鏈路將首先被多家雲端服務供應商使用。

And we are designed in from TIA. Our driver is a little bit late compared to our competitors and that we released the last quarter. And our driver because of late reduction did incorporate the specific requirement that MSA dictated or altered. So I would say our driver is a fully PO compliant driver, and we are working with multiple module manufacturers in incorporation and qualification. So that will bring additional revenue, say, if I would say, by Q4 this fiscal year.

我們是從 TIA 開始設計的。與我們的競爭對手相比，我們的驅動程式稍微晚了一點，我們在上個季度發布了它。而我們的司機由於後期減薪確實遵守了 MSA 規定或修改的具體要求。所以我想說我們的驅動程式是完全符合 PO 標準的驅動程序，並且我們正在與多家模組製造商合作進行合併和認證。因此，如果我可以這麼說的話，到本財年第四季度，這將帶來額外的收入。

So in general, our FiberEdge product has a pretty broad application, the different data rates and different applications, and we are benefiting from the increased CapEx spending of the industry, but also I believe we're gaining some market share. So that and will be -- continue to be a driver for our data center and overall revenue growth.

總的來說，我們的 FiberEdge 產品具有相當廣泛的應用，不同的數據速率和不同的應用，我們受益於行業資本支出的增加，我相信我們正在獲得一些市場份額。因此，這將繼續成為我們資料中心和整體收入成長的驅動力。

Harsh Kumar, Piper Sandler.

哈什·庫馬爾，派珀·桑德勒。

Good to talk to you again. Hong, I had a quick question. I was curious if you could talk about your data center business, the core business, excluding futuristic outlook for LPO and maybe ACC. Just your plain vanilla core data center business, how you see that business trending over the next, call it, 6 to 12 months? And then I had a follow-up.

很高興能再次和你交談。洪，我有一個簡單的問題。我很好奇您是否可以談談您的資料中心業務、核心業務，不包括 LPO 和 ACC 的未來前景。只是普通的核心資料中心業務，您認為該業務在未來 6 到 12 個月內的發展趨勢如何？然後我進行了後續跟進。

Thank you, Harsh. So you know that we disclosed the air pocket in demand on ACC, so from the entry customer. But the very fact that we delivered a sequence of growth in Q1 versus Q4 on our data center product is due to the strength of our FiberEdge product. So the LPO certainly is in a design win stage has not been contributed to meaningful revenue yet. And based on the booking activities and based on the -- our conversation with our customers, we hold a strong conviction for the second half of the year that the FiberEdge and the plain vanilla has put it, PMDs, we call physical media devices.

謝謝你，哈什。因此，您知道，我們揭露了 ACC 上對氣穴的需求，因此來自入口客戶。但事實上，我們資料中心產品在第一季相對於第四季度實現了連續成長，這要歸功於我們 FiberEdge 產品的強勁表現。因此，LPO 肯定處於設計獲勝階段，尚未帶來可觀的收入。根據預訂活動以及我們與客戶的對話，我們堅信，今年下半年 FiberEdge 和普通的 PMD（我們稱之為實體媒體設備）將大有可為。

We'll continue to experience growth, maybe accelerated growth. I'm really optimistic about that.

我們將繼續經歷成長，或許是加速成長。我對此非常樂觀。

Great. And then I was curious about LoRa. LoRa, I think in your guidance, Mark, you said LoRa will be off a little bit. This is coming on the heels of some very strong growth over the last several quarters. You talked about some new end markets, automotive, robotics, hearing aids, et cetera.

偉大的。然後我對 LoRa 產生了好奇。LoRa，馬克，我認為在你的指導下，你說 LoRa 會有點偏離。這是在過去幾個季度非常強勁的成長之後發生的。您談到了一些新的終端市場，汽車、機器人、助聽器等等。

I was curious if you could help us understand while LoRa is going to be off just a little bit? Is it just small stuff like timing or just coming off of hot growth? Or is there something else? And then when do you see these new markets materializing? And I'll get back in line after this.

我很好奇，您是否可以幫助我們了解 LoRa 何時會出現輕微的偏差？這只是時機之類的小事還是剛出現熱門成長？還是有其他原因？那麼，您認為這些新市場何時會實現？之後我會重新排隊。

Sure. Thanks for the question, Harsh. So LoRa in Q1, we reported $38.9 million, up from $37.1 million in Q4. So very nice sequential growth. Last quarter, we're getting more into the, call it, the $30 million to $35 million range.

當然。謝謝你的提問，Harsh。因此，我們報告稱，第一季 LoRa 的營收為 3,890 萬美元，高於第四季的 3,710 萬美元。因此連續成長非常好。上個季度，我們的收入進一步達到了 3,000 萬至 3,500 萬美元的水平。

So that's where we believe the market will kind of fall out in the next few quarters. We do believe that in our first quarter, there was a little bit of additional build. We said that LoRa has some project spend. Also, we had a customer build additional units for -- in anticipation of our product launch. So that's where LoRa is -- we believe that lower next quarter will be coming down a little bit, but still quite a strong business.

因此，我們認為未來幾季市場將會下滑。我們確實相信，在第一季度，我們有了一些額外的建設。我們說過LoRa有一些項目支出。此外，為了迎接我們產品的推出，我們也讓一位客戶建造了額外的單位。這就是 LoRa 的現狀——我們相信下個季度的銷售額會略有下降，但仍然是一項相當強勁的業務。

$3.9 million is still up 81% year over year. on LoRa, we do expect a comfortable $30 million to $35 million quarterly run rate. As Mark said, we disclosed a medical customer is ready to launch new product in Q1, there are some additional orders from them to support a new product launch.

390 萬美元仍比去年同期成長 81%。對於 LoRa，我們確實預計季度運行率將達到 3000 萬至 3500 萬美元。正如馬克所說，我們透露一家醫療客戶準備在第一季推出新產品，他們還有一些額外的訂單來支援新產品的推出。

Timothy Arcuri, UBS.

瑞銀的提摩西·阿庫裡。

I also wanted to ask about the update on AI connectivity. I assume that CopperEdge pretty much 0 in July and October. And then it sounds like you get a pretty big step up in fiscal Q4 because of all these engagements. Is that the right way to think about it?

我還想問一下有關 AI 連接的最新情況。我估計 CopperEdge 在 7 月和 10 月幾乎為 0。聽起來，由於所有這些活動，您在第四財季取得了相當大的進步。這是正確的思考方式嗎？

So Tim, that's a good question. We talked about the air pocket in demand due to the platform change with the anchor customer. That is unchanged and -- but we continue to engage with them for future generations, either well in both cable form and chips board type of linear equalizer applications relationships continue to be very tight, but the demand from them was lower a lot lower than we already expected. -- but the engagement with other customers for the application of the CopperEdge product and really very, very exciting and encouraging. There are 4, 5 different applications and use cases go beyond just the scale-up interconnect between different regs are materializing, and some of them are completing the qualification and just waiting for the deployment in their next-generation platforms, we do believe the revenue from other customers will come in Q4 time frame and start ramping from there?

提姆，這是個好問題。我們與主力客戶討論了由於平台變更而導致的需求空穴問題。這一點沒有改變——但我們會繼續與他們合作，開發未來產品，無論是電纜形式還是晶片板類型的線性均衡器應用，我們之間的關係仍然非常緊密，但他們的需求比我們預期的要低得多。 ——但與其他客戶就 CopperEdge 產品的應用進行的合作確實非常非常令人興奮和鼓舞。有 4、5 種不同的應用程式和用例不僅僅是不同註冊器之間的擴展互連正在實現，其中一些正在完成資格認證並等待在其下一代平台上部署，我們確實相信來自其他客戶的收入將在第四季度到來並從那裡開始增加？

And then, Mark, can you talk -- I mean this is kind of a nit, but revenues up like $5 million sequentially and gross margins down 50 bps. What's -- is that just mix?

然後，馬克，你能談談嗎——我的意思是這有點棘手，但收入環比增長 500 萬美元，毛利率下降 50 個基點。那是什麼——那隻是混合物嗎？

Yes. So Semtech is largely mix dependent. So the guide reflects what we believe the current mix will be. So 53.0% in Q2, it's a 260 basis point improvement. So in our financial -- in our press release, in our earnings presentation, we do not break out our semiconductor products groups that consists of our signal integrity and our analog mixed signal and wireless segments.

是的。因此，Semtech 很大程度上依賴混合。因此，該指南反映了我們對當前組合的看法。因此第二季為 53.0%，提高了 260 個基點。因此，在我們的財務新聞稿和收益報告中，我們不會單獨列出由訊號完整性、類比混合訊號和無線部分組成的半導體產品組。

So we brought that disclosure in from our 10-Q. We felt it would be helpful for investors to see it also in our earnings release and our earnings presentation. So within semiconductor products was 63.7% gross margin, up 720 basis points year over year, but largely mix dependent.

因此，我們從 10-Q 中引入了這項揭露。我們認為，讓投資者在我們的收益報告和收益報告中看到這一點也會很有幫助。半導體產品的毛利率為 63.7%，較去年同期成長 720 個基點，但很大程度上取決於產品組合。

Joe Moore, Morgan Stanley.

摩根士丹利的喬摩爾。

There was a line in your prepared remarks, you sort of said uncertainty in the market may impact timing of some of portfolio optimization initiatives. Can you just talk about what you mean by that? And kind of it doesn't sound like you guys are overly impacted by tariffs. What kind of uncertainty is that creating for you?

您準備好的發言中有一句話，您說市場的不確定性可能會影響一些投資組合優化計畫的時機。你能談談你的意思嗎？聽起來你們似乎並沒有受到關稅的過度影響。這給您帶來了什麼樣的不確定性？

So Joe, thank you for the question. What I mean by that is not about the tariff related, but it's just the overall macroeconomic uncertainties. As you know, the deal flow and people thinking about strategically is probably get a little bit deferred, but we continue to hold our strategic initiatives at a high priority. But because of the overall industry get distracted and getting focused on how to mitigate the tariff risk and activities on the strategic initiative is going to get delayed. So that's what we mean.

喬，謝謝你的提問。我的意思不是關於關稅的問題，而是整體宏觀經濟的不確定性。如您所知，交易流程和人們的策略思考可能會有所推遲，但我們仍將策略舉措放在高度優先的位置。但由於整個產業注意力分散，不再專注於如何降低關稅風險，戰略舉措的活動將會被推遲。這就是我們的意思。

And -- but we do provide more visibility in our gross margin from our earnings release. so that you can see that we own the business and as long as we own it, we'll continue to work hard to improve and deliver better results. That's the best way to create shareholders' value. We control what we can control. We can't do much on things we can control.

而且——但我們確實從收益報告中提供了更清晰的毛利率。這樣你就能看到我們擁有這項業務，只要我們擁有它，我們就會繼續努力改進並取得更好的結果。這是創造股東價值的最佳方式。我們控制我們能夠控制的一切。對於我們能夠控制的事情，我們無能為力。

So that is the macroeconomic environment.

這就是宏觀經濟環境。

Tore Svanberg, Stifel.

托爾·思文伯格，Stifel。

And welcome on board, Mitch. I had a question about the per se proximity sensor for the glasses. You talked a little bit about that, but -- how should we think about that business ramping? Would that happen in second half of fiscal '26? Or is that going to be more of a fiscal '27 event?

歡迎加入，米奇。我對眼鏡本身的接近感應器有一個疑問。您談到了這一點，但是—我們應該如何看待業務的成長？這會在 26 財年下半年發生嗎？或者這更像是 27 年財政年度的大事？

Tore, that's a good question. So we're really excited about the per se product. And as you know, traditionally, that product has been designed for the SAR standards specific absorption rate reduction. So it come in really handy due to its low power and high accuracy and also the noise rejection capabilities for smart variables, I bought a matter revamp smart losses, it was absolutely phenomenal. It's just taking pictures and recognize a different locations and do the translation in real time.

托爾，這個問題問得好。因此，我們對該產品本身感到非常興奮。如您所知，傳統上，該產品是針對 SAR 標準特定吸收率降低而設計的。因此，由於它的低功耗和高精度以及智慧變數的噪音抑制能力，它真的很方便，我買了一個改進的智慧損失器，它絕對是驚人的。它只是拍照、識別不同的位置並即時進行翻譯。

And we're seeing probably 5, 6 of other customers we are engaging for similar devices. So from the get-go, I think, accumulated, we have supported over 1 million smart glasses using this gesture control capability. Just imagine how many variable devices can be out there and using the smart glasses at the AI interface to link into the infrastructure. So we're very excited about that market perspective. We do believe, again, in the second half of this year, there are going to be more than matter jump on that bandwagon to provide smart glasses.

我們也看到大概有 5、6 個其他客戶正在與我們合作購買類似的設備。因此，從一開始，我認為，累計起來，我們已經支援了超過 100 萬副使用這種手勢控制功能的智慧眼鏡。試想一下，有多少可變設備可以在那裡，並使用 AI 介面的智慧眼鏡連接到基礎設施。因此，我們對這個市場前景感到非常興奮。我們確實相信，今年下半年，將會有更多的企業加入智慧眼鏡的行列。

That's great color. And another my follow-up and specifically on LoRa, you mentioned the medical customer or perhaps customers. Is this still only going to be the hearing aids? Or are you seeing Lora perhaps penetrate other types of medical applications?

顏色真棒。我的另一個後續問題，特別是關於 LoRa，您提到了醫療客戶或許是客戶。這仍然只是助聽器嗎？或者您看到 Lora 可能滲透到其他類型的醫療應用中？

For now, it's just the hearing aid we're talking about, but I wouldn't be surprised that the people start using LoRa for other medical device applications. The beauty of that is just a very low power consumption and very robust connectivity. So for example, the robotics is a new application and that now it's being proliferated pretty widely in using the LoRa to interconnect to different robotics and robots and to build the network.

目前，我們談論的只是助聽器，但如果人們開始將 LoRa 用於其他醫療設備應用，我並不會感到驚訝。它的優點在於功耗非常低，連接性非常強大。例如，機器人技術是一個新的應用，現在它正在被廣泛地推廣，使用 LoRa 來連接不同的機器人技術和機器人並建立網路。

Cody Acree, The Benchmark Company.

科迪·阿克里（Cody Acree），基準公司。

Congrats on the progress. Guys, could you talk about your expectations for seasonality into the second half across your various markets?

恭喜你取得進展。夥伴們，您能談談對各個市場下半年季節性的預期嗎？

Yes. Cody, thank you for the question. The seasonality for our TVS product that's a high-end consumer. We know that it's coincided with the smartphone release schedule. Other than that, I think the seasonality for at least for the next two, three quarters, we don't see the obvious seasonality.

是的。科迪，謝謝你的提問。我們的 TVS 產品的季節性針對的是高端消費者。我們知道這與智慧型手機的發佈時間表相吻合。除此之外，我認為至少在接下來的兩三個季度中，我們不會看到明顯的季節性。

We do see industrial side, the broader market recovery. We see in the data center side, everyone was concerned about the CapEx spending AI area, but now many of the CSPs and also the industry participants in the broader ecosystem all show the strong confidence that the second half, the CapEx spending is going to be accelerating. We're seeing that from our booking activities. LoRa side is the only one -- I wouldn't call it a seasonality just this project-based spending they need more material for Q1. But the end nodes numbers are increasing, and we are shipping record number.

我們確實看到工業方面、大盤的復甦。我們看到，在資料中心方面，每個人都專注於人工智慧領域的資本支出，但現在許多 CSP 以及更廣泛生態系統中的行業參與者都表現出強烈的信心，相信下半年資本支出將會加速成長。我們從預訂活動中看到了這一點。LoRa 方面是唯一的——我不會稱之為季節性，只是基於項目的支出，他們需要為第一季提供更多材料。但終端節點的數量正在增加，我們的出貨量正在創下紀錄。

Every quarter, we're creating more -- a new record for a number of end nodes. The new applications being discovered and new products, [RIGI], offers LoRa+, whether LoRa+ in addition to LoRa protocol. We support other RF protocols. The significance for that, for example, BLE, the Bluetooth enhanced is that some applications, they wanted to use LoRa but they wanted to have the back-end compatibility on their installed and deployed base. So with this compatibility of LoRa+ allow us -- allow the integrators to offer a product offers a back-end compatibility with the existing protocol.

每個季度，我們都在創造更多終端節點的新紀錄。正在發現的新應用和新產品，[RIGI]提供LoRa+，除了LoRa協議之外，是否還提供LoRa+。我們支援其他 RF 協定。例如，BLE（增強型藍牙）的意義在於，某些應用程式想要使用 LoRa，但他們希望在其安裝和部署的基礎上具有後端相容性。因此，透過 LoRa+ 的這種相容性，我們可以讓整合商提供與現有協議具有後端相容性的產品。

But going forward, they can take advantage of the lower product. So LoRa is still to us lower centric. That will unlock a range of new applications. I feel that even though the Q2 revenue compared to Q1 will be slightly down, but that's not a seasonality.

但展望未來，他們可以利用較低的產品。所以LoRa對我們來說還是比較低中心的。這將解鎖一系列新的應用程式。我覺得雖然第二季的營收與第一季相比會略有下降，但這並不是季節性的。

Excellent. And then just thoughts on your gross margin and OpEx drivers in the second half and what kind of trends can we expect?

出色的。然後您如何看待下半年的毛利率和營運支出驅動因素以及我們可以期待什麼樣的趨勢？

Cody, so I think we've talked about product mix between our 3 end markets that will largely drive our gross margin into the second half. And for OpEx, just for gross margin and OpEx, we're only guiding out 1 quarter. But for OpEx, I believe we're making some very good investments in R&D. So we continue to focus on project spend and monitoring our product spend with R&D that has not changed quarter-over-quarter. We believe we have some great opportunities in front of us.

科迪，我認為我們已經討論了三個終端市場之間的產品組合，這將在很大程度上推動我們下半年的毛利率。對於營運支出，僅針對毛利率和營運支出，我們僅指導 1 個季度。但對於營運支出，我相信我們在研發方面做了一些非常好的投資。因此，我們繼續關注專案支出並監控我們的產品支出，而研發支出與上一季相比沒有變化。我們相信，我們面前有一些很好的機會。

Other areas of OpEx growth, we are kind of filling out our commercial team, and that commercial team is like a technical sales force, right? So that team allows us to get some better information, better information exchange with our customers and better aligns our R&D spend to what our customers need.

在營運支出成長的其他領域，我們正在充實我們的商業團隊，而這個商業團隊就像一支技術銷售隊伍，對嗎？因此，該團隊使我們能夠獲得更好的信息，更好地與客戶交換訊息，並更好地將我們的研發支出與客戶的需求結合。

Craig Ellis, B. Riley Securities.

克雷格·艾利斯 (Craig Ellis)，B. Riley 證券。

And Mitch, great to be back in touch and having you on board the Semtech team. Guys, I wanted to start just by getting a better understanding of what you're expecting within data center in the back half of the year. So it seems clear that we've got two significant things happening. We've got AI connectivity that seems to be coming up and coming back on multiple customer wins away from your key customer. And then we've got LPO that's starting to ramp up.

米奇，很高興再次聯繫你並歡迎你加入 Semtech 團隊。夥伴們，首先我想更了解你們對今年下半年資料中心的期望。因此，顯然我們已經發生了兩件重要的事情。我們擁有的 AI 連接似乎正在興起，並正在從您的關鍵客戶那裡贏得多個客戶。然後我們的 LPO 就開始加速發展了。

The question is, can you help us dimension those two items as we exit the year, which will be the bigger driver. And if you look at the arc of what's happening with these, can you help us by characterizing what we should expect as those programs go from initial ramps to more meaningful volume.

問題是，您能否幫助我們在年底前確定這兩個項目的尺寸，這將成為更大的驅動力。如果您觀察一下這些項目的發展軌跡，您能否幫助我們描述一下，當這些項目從最初的成長階段發展到更有意義的規模時，我們應該期待什麼？

Thank you, Craig. So as you know, we are -- we have a pretty broad product portfolio for our data center connectivity. We've got fiber edge with the TIA and the driver. We've got a CopperEdge with a linear equalizer, and then we get to Tri-Edge CDRs and basically integrated with PMD.

謝謝你，克雷格。如您所知，我們—我們的資料中心連接產品組合非常廣泛。我們擁有 TIA 和驅動器的光纖優勢。我們有一個帶有線性均衡器的 CopperEdge，然後我們得到了 Tri-Edge CDR 並且基本上與 PMD 整合。

So this diverse portfolio does help us even when we experience a little bit the air pocket in CopperEdge with the anchor customer and the growth in FiberEdge and the Tri-Edge overweigh the drop or the decrease in demand on the CopperEdge.

因此，即使我們在 CopperEdge 中遇到了一些與主力客戶之間的差距，並且 FiberEdge 和 Tri-Edge 的成長超過了 CopperEdge 需求的下降或減少，這種多樣化的產品組合確實對我們有所幫助。

But as I said, we expect a lot of good things happening in the latter part of this fiscal year with more than the enter customer demand for copper etch, that's going to materialize. LPO, that's the incremental opportunity is going to materialize when the customers start to deploy $160 optical transceivers, they're likely to use drivers for lasers and modulators and because the traditional 100 gig or below they could use an integrated driver from DSP to drive EML. It looks that the performance in order to get the link very robust, they need external drivers. So that's incremental opportunities for us.

但正如我所說，我們預計本財年下半年將發生很多好事，不僅僅是客戶對銅蝕刻的需求，這將會實現。LPO，當客戶開始部署 160 美元的光收發器時，增量機會就會實現，他們可能會使用雷射器和調製器的驅動器，並且由於傳統的 100 千兆或以下，他們可以使用 DSP 的整合驅動器來驅動 EML。看起來，為了使連結的性能非常強大，他們需要外部驅動程式。所以這對我們來說是增量機會。

So if I have to take a step back, look at the fiber edge it's a strong product line in itself provides a very high level of demand. And then when this tailwind starts coming in, playing in and that's our incremental on top of it. In the FiberEdge, we benefit from, as I said, the CapEx spending from the CSP side.

因此，如果我必須退一步來看光纖邊緣，它本身就是一條強大的產品線，提供了非常高水準的需求。然後，當順風開始吹來時，我們就會開始發揮作用，這就是我們在此基礎上的增量。正如我所說，在 FiberEdge 中，我們受益於 CSP 的資本支出。

Also, I believe we're gaining some market share in there. So we get a strong drilling base and you get three incremental opportunities superimposed on top of it. And this really we feel like a broader portfolio to help to mitigate the exposure the air pocket we described before.

此外，我相信我們正在獲得一些市場份額。因此，我們獲得了強大的鑽井基礎，並且在此基礎上還獲得了三個增量機會。我們確實覺得這是一個更廣泛的投資組合，有助於減輕我們之前描述的氣泡風險。

Okay. So very broad-based as we exit the year and participation from three key parts of the portfolio. The follow-up question was around the product that you spoke to in your prepared remarks on, you talked about surge switch as being an integrated product that is more system-level protection. I want to understand what types of products is that getting designed into -- and how does the dollar content for that product compared to what we would typically expect with protection? And how should we think about that product's ability to drive visible growth within that part of business in high-end consumer?

好的。因此，當我們結束這一年時，基礎非常廣泛，並且投資組合的三個關鍵部分都參與其中。後續問題是關於您在準備好的評論中提到的產品，您提到電湧開關是一種整合產品，具有更多的系統級保護功能。我想了解這種保護措施被設計到哪些類型的產品中——以及與我們通常所期望的保護措施相比，這種產品的性價比如何？我們該如何看待該產品推動高端消費業務領域明顯成長的能力？

Yes, Craig. So on SurgeSwitch, you're right, it is an integrated device. So it's it provides additional protection and digital features. So we've launched this in multiple customers. system-level design does require a lot more customer intimacy. So we're very happy with the amount of engagement that we have with customers.

是的，克雷格。所以關於 SurgeSwitch，您說得對，它是一個整合設備。因此它提供了額外的保護和數位功能。因此，我們已經在多個客戶中推出了此功能。系統級設計確實需要更多的客戶親密度。因此，我們對與客戶的互動程度感到非常滿意。

And it does have some noticeable or some improvement in ASPs. But again, I think Semtech's TVS products are not just commodity type products. So we've already been enjoying or deserving, I should say, higher ASPs based on our technology. So SurgeSwitch, though, it protects against electro overstress in addition to electrostatic discharge over a wider temperature operating range. So that's the benefit that our users get when they design in SurgeSwitch.

而且它在 ASP 方面確實有一些明顯的改進。但我再次認為，Semtech 的 TVS 產品不僅僅是商品類型的產品。因此，我應該說，基於我們的技術，我們已經享受或值得更高的平均售價。因此，SurgeSwitch 除了可以在更寬的溫度工作範圍內防止靜電放電之外，還可以防止電過應力。這就是我們的用戶在使用 SurgeSwitch 進行設計時所獲得的好處。

And then also kind of they used to protect the Type-C connectors. Now the Type-C is used everywhere. It's not only in the smart is in automotive, it's in a telecom in many different charge ports. So the circuits which just provide a lot more robust protection capabilities.

它們也用於保護 Type-C 連接器。現在Type-C已經是普遍使用的方式了。它不僅應用於智慧汽車領域，還應用於電信領域的許多不同充電埠。因此，這些電路提供了更強大的保護能力。

Okay. So it's nicely expansive for you over time?

好的。那麼隨著時間的推移，它對你來說會是一個很好的擴展嗎？

Exactly. Yes.

確切地。是的。

Scott Searle, Roth Capital Partners.

羅斯資本合夥公司的 Scott Searle。

Maybe to just follow up quickly on the data center front. I was wondering if we could get calibrated if we put LPOs to the side starting to ramp up in third and fourth quarter and some ACC traction starting by the end of this year and ramping into fiscal '27. The portfolio outside of that what sort of normalized growth rate do you think we should see over the next couple of years? It sounds like in the near term, we're starting to see FiberEdge continue to drive that. I'm wondering if you could help us understand what that that normalized expansion looks like and your comfort level that customer inventories are at a pretty good level so that we don't see any sort of air pockets or big drawdowns in the next couple of quarters, and I'll call it core data center before we get to LPOs and ACC.

也許只是為了快速跟進資料中心方面的情況。我想知道，如果我們將 LPO 放在一邊，在第三季和第四季開始增加，並從今年年底開始增加一些 ACC 牽引力，並進入 27 財年，我們是否可以進行校準。除此之外的投資組合，您認為未來幾年我們應該看到什麼樣的正常成長率？聽起來在短期內，我們開始看到 FiberEdge 繼續推動這一點。我想知道您是否可以幫助我們了解正常化擴張的情況，以及您對客戶庫存處於相當好水平的信心程度，以便我們在接下來的幾個季度中不會看到任何類型的氣泡或大幅下降，在我們討論 LPO 和 ACC 之前，我將其稱為核心數據中心。

So the normalized growth rate, I think we can track basically out of the research report on the CapEx spending, then for a number of research -- market research report, they even call out more specific optical transceivers. As I said, our data center product. And the main thing is fiber edge. If you track the volume increase of data center transceivers. And as I think our growth rate to track that pretty well and probably higher than that.

因此，我認為我們可以從資本支出研究報告中追蹤標準化成長率，然後對於一些研究 - 市場研究報告，他們甚至會提到更具體的光收發器。正如我所說，這是我們的資料中心產品。而最主要的是纖維邊緣。如果您追蹤資料中心收發器的數量成長。我認為我們的成長率能夠很好地追蹤這一點，甚至可能更高。

The LPO adoption will bring incremental capability, incremental revenue for us because of the driver because the premium on TIA side and CopperEdge right now, with the anchor customer is not 0, but it's lingering and until the next generation, but with other customers, it's going to be start contributing meaningfully in Q4 and ramping in the next fiscal year. Then they try Tri-Edge product, which is a CDR. We designed in the major -- with the major CSPs for the reasons beyond our control, they delay the deployment and now they seem to be resuming. So that's why it give us strong conviction of these factors compounded together. I do feel borrowing the rapid adverse change of the tariff policy of something else beyond our control, we do feel the second half of the year, we are very well positioned.

LPO 的採用將為我們帶來增量能力和增量收入，因為目前 TIA 方面和 CopperEdge 的溢價對於主力客戶來說不是 0，而是會持續到下一代，但對於其他客戶來說，它將在第四季度開始做出有意義的貢獻，並在下一個財年大幅增加。然後他們嘗試 Tri-Edge 產品，這是一種 CDR。我們與主要的 CSP 進行了重大設計，由於我們無法控制的原因，他們推遲了部署，現在他們似乎正在恢復。這就是為什麼我們堅信這些因素綜合在一起。我確實感覺到，借用關稅政策的快速不利變化以及其他一些我們無法控制的事情，我們確實感覺到下半年我們處於非常有利的位置。

Okay. Very helpful. And if I could conclude, just on the cellular module front, seasonally down quarter, gross margins with utilization under a little bit of pressure. But given [Quectel's] headwinds within the North American markets and increasingly, I think, in European markets, what we're seeing with the exit of few blocks as well. I wonder if you could talk a little bit more about the bookings when you would expect that to inflect and we start to see that more in the P&L and really realistically, what target gross margins could look like in that environment, given that some of your competitors are going to be facing pretty high bars in terms of tariff headwinds?

好的。非常有幫助。最後，就蜂巢模組方面而言，由於季節性下滑，毛利率和利用率都面臨一些壓力。但考慮到[Quectel]在北美市場以及歐洲市場日益增長的逆風，我們也看到了一些街區的退出。我想知道您是否可以再多談一下預訂情況，您預計什麼時候會出現變化，我們開始在損益表中看到更多變化，並且實際上，考慮到您的一些競爭對手在關稅逆風方面將面臨相當高的門檻，在這種環境下，目標毛利率會是什麼樣的？

Scott, I'll take that one. So as we reported, we've had seven consecutive quarters of bookings growth. So I think that's long-term kind of sustainable bookings. We did have a down quarter in Q1. But again, that was in line with our expectations, and we guided for Q2 that IoT cellular business to increase in revenue.

斯科特，我接受這個。正如我們所報導的，我們的預訂量已連續七個季度增長。所以我認為這是一種長期可持續的預訂。我們第一季確實出現了下滑。但這再次符合我們的預期，我們預計第二季物聯網蜂巢業務的收入將會增加。

Gross margins, we should see step-ups in gross margins. We are managing this business for margin expansion along with our other businesses.

毛利率，我們應該會看到毛利率的上升。我們將這項業務與我們的其他業務一起管理，以擴大利潤率。

Thank you. This concludes the question-and-answer session, and I'd like to turn the call back to Mitch Haws for closing remarks.

謝謝。問答環節到此結束，我想請米奇‧霍斯 (Mitch Haws) 作結語。

Thanks, Joe. That concludes today's call. Thanks to all of you for joining us today.

謝謝喬。今天的電話會議到此結束。感謝各位今天的參與。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束。現在您可以斷開線路。感謝您的參與。